Florida politics, policy, and plain-spoken analysis by Gary Fineout.

Universities

March 27, 2017

After watching the prelude for weeks, the Florida Legislature and its Republican leaders will finally put pen to paper this week (so to speak) and release their detailed spending plans for the coming fiscal year.

After listening to leaders in the House and Senate discuss their priorities, the expectations are that the rival budgets could be widely divergent in what they cut, what they keep and what they enhance.

There are a multiple reasons for that, whether it's Senate President Joe Negron's push for increased money for state universities, or House Speaker Richard Corcoran's insistence that the state shutter its economic development agency Enterprise Florida.

But less noticed is that the House, Senate and Gov. Rick Scott have chosen to include information that supports their arguments, while seemingly sidestepping other salient points. This could influence the tenor of the debate that is about to intensify.

So it might be worthwhile and step back for just a second to recall how everybody got here and what's important to remember for the budget battle that still lies ahead.

So here's a few things to understand:

DON'T CALL IT A DEFICIT: There is no budget deficit this year. Plain and simple.

To understand the underlying budget situation, it's important to realize this. In Florida a deficit occurs when the state collects less money than what is needed to pay for things that are in the budget.

Florida's tax collections are in fact growing. The main budget account - known as the general revenue account - is expected to grow in the current fiscal year by 4.4 percent, or $1.23 billion. This same account, which relies on a variety of tax sources but primarily the state's sales tax, is expected to grow $1.16 billion - or 3.9 percent - in the fiscal year that starts on July 1. That's a stark difference from the depths of The Great Recession when legislators were required to cut spending (or in 2009 raises taxes) to make the math work.

So then where does the confusion lie?

Well, let's start with a document called the Long-Range Financial Outlook. Thanks to current Sen. Tom Lee, the voters in 2006 approved a constitutional amendment that requires the development of an outlook that looks out over a three-year period and reviews both sides of the ledger - the expected spending and the revenue coming in.

The outlook comes out once a year. The one approved in September found that when balanced together legislators had a windfall of only $7.5 million for the 2017-18 fiscal year. And the economists and analysts who put it together warned of a "structural imbalance" that could create a sizable budget gap in the years to follow. That has sparked talk of deep budget cuts including a House plan to cut at least $1.4 billion alone in the coming year.

But it's important to remember this budget gap is a summary of both revenues - and expenses.

The long-range outlook put together assumes nearly 50 different expenditures - and that greatly impacts the bottom line.

Let's start with tax cuts: The overall outlook assumes that there will be $254 million in recurring tax cuts in each of the next three years. This is based on a historical average in recent years, but the point is this, part of the projected gap is based on the assumption that legislators will continue to cut taxes, which adds to the potential shortfall, which helps trigger the need for cuts elsewhere to close that gap.

The budget shortfall or gap that is projected to occur is also driven by a long line of other spending decisions where economists plugged in the numbers based on historical decisions made by legislators: The outlook assumes a $1 billion reserve on top of other existing budget reserves. It assumes that legislators will fully fund increased enrollment in public schools, pay for increases in Medicaid, and set aside more than $400 million over the next three years to pay for increased costs associated with the state employee health insurance program.

But there's more - the outlook assumes an increase of per-student funding above enrollment growth, grants to libraries and museums, local government park grants, and in the out years money spent on replacing a law-enforcement radio system and the replacement of Florida's accounting system.

So what does that mean? In reality, the budget debate is one about choices.

Do legislators choose to keep cutting taxes? Do they choose to keep spending money on certain things? Do they choose to make deep cuts due to a philosophical belief that government is too big and too expensive? Do they refuse to revisit past decisions that contribute to their structural imbalance - including for example - decisions to give out tax credits to various businesses. This could include anything from the insurance tax credit that is targeted by the Senate, or the tax credit scholarship program that continues to grow. (The amount of tax credits available for the scholarship program is projected to increase from $559 million this fiscal year to nearly $699 million next year.)

THE SCHOOL TAX DEBATE: If there is one item that could derail the entire budget process it's the thorny annual dilemma over school property taxes.

Here's the problem: As property values rise, this translates into more money collected by local school districts that could be spent on public schools. In other words, if the value of your home goes up you will pay more in taxes in the coming year - unless the tax rate is lowered by an equal amount to offset the increase in values.

Legislators don't appropriate this local property tax money - BUT - they do draw up spending plans that assumes a mixture of both local and state funding. This is known as the Florida Education Finance Program or FEFP and districts that wish to draw down the state funding must collect a certain amount of money. (This is known as the required local effort or RLE.)

Republican leaders, including Scott, have used these increased local tax dollars to boost the overall amount spent on public schools. Some legislators have defended the practice by noting when property values plunged during the Great Recession that the state helped offset the loss (but not completely.)

But Corcoran has vowed that he will not let this happen this year - and he's taken a much stronger stance on this than practically every other spending item in play.

Important piece of history: Corcoran was chief of staff for then-House Speaker Marco Rubio when the Legislature waged a lengthy debate over property taxes during a time when Florida's real-estate market was super heated. The position of the GOP-controlled Legislature at the time was pretty simple: If local governments take in more tax dollars because of rising values, then it's a tax increase. Legislators forced cities and counties to roll back their tax rates. So Corcoran is being consistent with that position. (Also worth noting: Several senators, then in the Florida House, also took that position. Dennis Baxley, Anitere Flores, Bill Galvano, Denise Grimsley and Perry Thurston voted in favor of the bill to force local tax rollbacks.)

Scott has maintained that this isn't a tax increase and his own budget recommendation relies on nearly $558 million in increased local school taxes to help pay for an overall 3 percent increase in per-student funding. Scott has tried to suggest this is no different than if the price of a car goes up and you pay higher taxes because of the higher price. Yeah, but the government doesn't set the price of a car. In this instance government at both the state and local level have a hand in deciding how much property owners will spend.

BREAKING DOWN OTHER FLASHPOINTS...Quick hits on remaining things to look for and understand:

GAMBLING: Right now all these budget projections being thrown out do not assume any changes in Florida's gambling laws or a new compact with the Seminole Tribe. That means if - and it's a pretty big if - legislators could stroke a deal with the Seminoles and the rest of the players in the seemingly intractable gambling turf war it could provide an injection of cash that could help smooth things over.

GULF COAST SPILL MONEY: While this may not command a lot of attention around the state, the ongoing tug-of-war over money the state received as part of a settlement over the 2010 BP oil spill in the Gulf of Mexico is part of the overall dynamic that will decide how this session ends up. The state last year got $400 million as its first installment. Under an existing law some $300 million is supposed to go to eight Panhandle counties that were impacted the most by the spill. But the Legislature has to yet to agree to send the money out the door.

Corcoran and House leaders didn't like the arrangement allowed under the existing law so they have crafted a bill that places more oversight on the spending - and prohibits any of the money being used on economic development projects. The Senate so far has a different approach and they have not agreed to all the House restrictions. This money is a big, big deal to the Panhandle Republicans and in Tallahassee parlance - this is their going home bill - meaning they can't go home unless they get it worked out.

ECONOMIC DEVELOPMENT: This item has gotten plenty of press especially since it has triggered a feud between Scott - who wants to keep funding intact for the state's economic development agency - and House leaders who want to eliminate Enterprise Florida and scale back Visit Florida, the tourism marking agency. The Senate so far is siding with Scott. The question is will they remain in sync with the governor all the way to the finish line.

HIGHER EDUCATION: Negron's bid to increase funding to state universities as part of an effort to propel them into the top ranks of the nation's public colleges is going to be rebuffed by House leaders who contend that universities are misspending what they have now (some of which came with the help of legislators who placed projects into university spending lines.) The one word of caution in this debate is that numbers get thrown around sometimes without a clear sense of what they mean.

Universities are dependent on several streams of funding and it appears so far that the House is lumping everything in to make an argument about overall spending. There are differences between straight state funding and the money that universities take in from other sources - whether it's tuition, money from federal grants, or money medical schools earn from seeing patients. For example, the amount of tuition money can go up even if the rates don't because universities admit more students. T

The House has zeroed in on spending among the foundations and whether it's proper for the universities to use state funding to subsidize fundraising operations. So far, the universities have had a muted response and not given a clear explanation as to practice. One big question is whether or not the House will advocate for blocking universities from using their foundations to pay university employees above state limits.

TRUST FUNDS: It's important to remember that some taxes and fees charged by the state don't wind up in the main budget account. Instead they are set aside in what are known as trust funds. Year in and year out special interests groups argue that money collected in these funds belong to them. And year after year the Legislature politely ignores this and transfers money of these trust funds and uses to help balance the budget.

SPEND NOW, PAY LATER? Unlike the federal government, Florida is required to have a balanced budget every year. That doesn't mean of course the state doesn't have debt. It does.

Until Scott came into office, past governors and legislators authorized borrowing for fixed capital costs such as building college buildings, roads and acquiring environmentally-sensitive lands. Scott started drawing a firm line about this and led the charge to push down the state's debt load. As of last June, it was $24.1 billion or more than $4 billion lower than it was when Scott came into office.

Negron's plan to build a reservoir south of Lake Okeechobee calls for increased borrowing. Currently the bill moving authorizes more than $3 billion in bonding authority to go to various projects, but with an estimated $1.2 billion going to the reservoir project. But that's not what is needed right away in this year's budget.

If the plan is approved it would carry an estimated $100 million price-tag to this year's budget since the bonds would be paid back over 20 years in installments.

So Negron's plan has an immediate cost to the treasury, but it's also important to understand that the full amount of his project will not included in this year's budget.

BOTTOM LINE: Under the current schedule legislators are operating under the House and Senate are expected to pass their budgets during the second week of April.

That week is already truncated because of religious holidays so it is highly unlikely that any negotiations or work can begin until April 17. That means legislators will have about 15 days to get everything worked out in order to get a budget finished on time. That's because Florida law requires the budget to be finished 72 hours before the final vote.

So that's a lot of ground to cover in a short amount of time. Besides the above-mentioned topics there's other issues at play, including pay raises, more money for charter schools etc.

March 10, 2017

On Saturday a reminder of Florida's terrible past and evolution will finally open its doors to the public.

After spending nearly $6 million on renovations, The Grove is scheduled to open on March 11 - or one day after the anniversary of the birth of Gov. LeRoy Collins.

The mansion holds a significant role in the state's history. Built with slave labor by territorial Gov. Richard Keith Call, it would eventually become home to Collins, who tried to shepherd the state through the civil rights era by taking a more moderate stance than other Southern governors. Collins married Mary Call Darby Collins, the great-granddaughter of Call.

The exhibits catalog the changes in the state and those who lived there - featuring for example - an audio description of Call's denunciation of Florida's secession from the Union where he told a group of secessionists that they had "opened the gates of hell."

The museum includes exhibits that detail how Collins initially came into office defending segregation but then came to view it as morally wrong. And it features illuminating information on other members of the Call family who lived in the mansion during the Civil War and throughout the decades before Collins and his wife moved into it.

But up on the 2nd floor of the mansion is an exhibit that actually touches on some of the main legislative battles that are raging a mile or so southward of The Grove in the halls of the state Capitol.

Museum caretakers have placed a short film that talks about Collins legacy in attempting to "modernize" his home state.

What does it touch on? Higher education, promotion of tourism, and efforts to attract businesses to the Sunshine State.

Collins is lauded as someone who pushed for the creation of junior colleges and the creation of the University of South Florida because he felt it was important to have higher education institutions closer to where people lived. (The Senate this week passed a bill designed to boost the state's higher education system into the ranks of the nation's elite.)

The film also points out that Collins worked constantly to try to lure businesses from outside the state to come to Florida. It quotes Howard Hughes, the industrialist (and pilot and film director...) as calling Collins "the greatest salesman" that Florida ever had. (The House is scheduled on Friday to approve a bill that would shutter the state's economic development agency Enterprise Florida.)

And then there's the part of the film that appears to have bearing on one of the key talking points being made by House Speaker Richard Corcoran and House supporters about Visit Florida, the state's tourism marketing corporation.

They have noted that Visit Florida was officially created back in the '90s and have argued that people visited Florida before then without the need of any state resources promoting tourism. The House is considering a bill to overhaul Visit Florida and appear on track to cut a large chunk of its funding.

But the exhibit at The Grove seems to contradict that.

"He foresaw the need for greater state funding to promote tourism and helped lay the groundwork" for the organization that eventually become Visit Florida,'' states the exhibit.

State officials from the Department of State - who work for Gov. Rick Scott - say this is a bit of coincidence, noting that work on The Grove exhibits predate the incendiary debate over Visit Florida and Enterprise Florida by probably a year or more. Scott is fiercely opposed to the House efforts and has criticized House members for considering "job-killing legislation." Public records appear to back that up as emails and discussions about the script go back to early 2016.

For what it's worth, Scott does not plan to attend the grand opening of The Grove, so it may be a while before he sees the exhibit himself. At last word, it didn't sound as if any House leaders, including the speaker, planned to be there either.

January 05, 2015

Florida Gov. Rick Scott, considered one of the most vulnerable governors in the nation last year, will this week be sworn into a second term and take his place in state history as just the second GOP governor to earn re-election.

Scott's priorities _ which are likely to be reflected in his inauguration day speech _ won't be much of a surprise since he is expected to repeat what he's been saying for some time now.

Scott will stress jobs, the state's economic recovery, tax cuts, as well as other key parts of Scott's re-election platform such as keeping college tuition costs down.

But key questions remain, including whether or not Scott gets any kind of "honeymoon" after his narrow re-election. And additionally, how will Scott fare with the distractions, scandals and other problems that loom on the horizon?

Any of these could be a test for Scott and his campaign-hardened team led by Chief of Staff Melissa Sellers. After winning by roughly 64,000 votes how much political capital does Scott really have, and more importantly, how will he react if legislators, lobbyists and other in Tallahassee start worrying about the next set of campaigns instead of Scott?

it can be argued of course that as long as the state's economy continues to recover that Scott has met his primary challenge and the one that he ran on.

But there's plenty of challenges Scott will confront in the coming year that could cause him problems and harm his eventual legacy.

Here's just some of them:

WILL REPUBLICANS REMAIN TRUE TO HIM? One of the most immediate challenges is what type of control Scott will retain over the Republican Party of Florida. Scott, with input from people like Sellers and former chief of staff Adam Hollingsworth, helped put people in place at the RPOF whose primary job was focused on getting Scott re-elected.

But for a variety of reasons there are those who aren't entirely trustful. With possible presidential campaigns for either U.S. Sen. Marco Rubioand former Gov. Jeb Bush gearing up, those loyal to Rubio and Bush harbor lingering doubts about the party. Look no further than the decision to give the keynote speech in the party fundraising dinner to Louisiana Gov. Bobby Jindal instead of trying to tap someone like Rubio.

The big test for Scott will come later this month when Leslie Dougher tries to win a new term as chairman of the state party. An early endorsement from Scott for Dougher did not dissuade Blaise Ingolia, a newly-elected state representative, from challenging her. Due to party rules Scott has a great deal sway over the executive committee, but a defeat of his hand-picked candidate would be a bit of a blow as he starts his second term.

ROLLING THE DICE AGAIN: Last year Scott tried to come up with a new compact with The Seminole Tribe of Florida that would allow the tribe to continue to enjoy parts of its ongoing gambling monopoly while giving a sizable boost to state revenues.

State legislative leaders made it clear that the deal would be dead-on-arrival due to the ongoing battle between other gambling interests, including those seeking to bring resort styled casinos to South Florida. Key portions of the existing deal with the tribe will expire this summer. Some legislative leaders, such as Senate President Andy Gardiner, have made it obvious that the end of this deal is not a major concern even if means the state would lose out on several hundred millions a year by allowing the existing deal to end.

Can Scott come up with a deal that keeps the tribe happy, keeps the money flowing into state coffers, yet can also get enough votes in the Florida Legislature?

PRISON DEATHS: Scott late last year agreed to give Julie Jones, the former head of the Department of Highway Safety and Motor Vehicles, a $160,000 a year job (on top of her state pension) to come out of retirement and take over the Department of Corrections.

Jones is stepping into the post at a time when the agency is under fire for inmate deaths and allegations of cover-ups. Right now the Florida Department of Law Enforcement is investigating dozens of inmate deaths and even today a legislative panel is expected to delve into all of the problems at the state's prisons.

Scott, who initially wanted to slash prison spending when he was running in 2010, has tried to keep his distance from the ongoing problems. But the ongoing investigations and problems with some of the privatization efforts pushed under his watch may put the scandal at his doorstep.

LEGISLATURE GOING ITS OWN WAY: Republicans who control the Florida Legislature went out of their way in 2014 to ensure Scott had a successful session as he moved into his re-election campaign. But there's been the feeling that it was an uneasy detente. Scott had a rocky relationship with many legislators when he first came into office because he defeated the GOP establishment candidate Bill McCollum.

Now with nothing else to run for _ right now at least _ how cooperative will legislators be? Gardiner has maintained Scott retains a good deal of sway due to his veto power. And there are reports from legislators that Sellers herself has tried to go out of her way to reach out to them in a friendly manner.

Some of Scott's priorities such as boosting school funding should be an easy sell to lawmakers.

The recent news that the budget surplus increased could also make it easier for Scott to get legislators to going along with additional tax cuts. But $1 billion over the next two years? Permanent elimination of taxes on manufacturing? A property tax constitutional amendment? Some of these may prove to be a bit more challenging once legislators delve into the nitty gritty details.

Other flashpoints could flare up as well: Gardiner himself during a session with reporters said that if there was a push to approve a new deal with the Seminole Tribe that he wanted a full-blown look at the operations of the Department of Lottery. Is that a sign that Lottery Secretary Cynthia O'Connell could find herself in for a difficult confirmation process?

Will legislators also fault Scott for how his Department of Health has handled implementation of last year's medical marijuana law? Some Democrats are already suggesting that the department may be trying to stall implementation because there is an opposition to the law from within the administration.

Put it all together and it could mean that even this year Scott could have a bumpy session.

PUBLIC RECORDS BATTLE: Scott remains locked in a legal battle over how his administration handled public records that is just one of the reminders of how the former CEO turned politician has dealt with the state's open records law. The governor is being sued for allegedly violating the state's public records law.

Some may view the motives of Tallahassee attorney Steven Andrews as suspect. But Andrews has been successful in many of his endeavors, including winning his initial lawsuit over a land dispute with the state as well as his defense of one-time aide CarlethaCole in charges that she illegally taped another aide in the lieutenant governor's office.

Chief Judge Charles Francis will be confronted with deciding whether or not he believes that Scott's office violated the public records law and did not timely produce records records for Andrews. The practical implication of an adverse ruling would be limited since we are talking about a civil lawsuit, but it would still prove to be historic if a judge found fault with the governor.

SCHOOL DAYS: This coming year Florida is expected to transition away from the Florida Comprehensive Assessment Test and replace it with a new test intended to measure how students fare on the new "Florida standards" that are largely modeled after Common Core.

Common Core remains a radioactive term with some conservatives. Scott has tried to assuage critics by asking Education Commissioner Pam Stewart to convene a group to look at the standards once again. Meanwhile Stewart is also being asked to "investigate" the use of testing in Florida schools.

The most immediate problem is ensuring that the new test is administered smoothly and that there aren't any problems in evaluating the work of students.

But the continued focus on Common Core means that it will continue to a potential distraction _ and political problem _ for Scott and state legislators.

The other dynamic, however, is Scott will find himself confronting Bush and his allies if the governor tries to dismantle any of the main elements of the Bush's education reforms that were put in while he was in office.

HIGHER EDUCATION: Scott could also create friction with business leaders and legislators over his ideas for higher education as well.

Scott has pushed vigorously to roll back tuition hikes - and take away the power to let universities raise their prices. In his inauguration speech, Scott will expand that focus to suggest there should be limits on graduate tuition hikes as well.

But Scott's austerity pitch will come at a time when some universities like the University of Central Florida and the University of South Florida are coming up with plans to expand their campuses.

While it's true tuition doesn't pay for new buildings, any expansion brings with it higher operating costs, which have to be paid from either tuition or state general revenue.

Schools such as Florida State University led by new president John Thrasher want more money to boost faculty salaries in an effort to move FSU into the ranks of the nation's leading public universities.

While legislators backed Scott's tuition plan during a campaign year, it may be harder for them to ignore the requests from university presidents _ and local leaders _ who want their schools to grow.

THE NEXT ELECTION: Scott has been fairly good at avoiding getting too involved in presidential politics _ or even other significant state and local races.

But he might find that difficult as both the 2016 presidential election and the 2018 state elections begin to heat up.

It's widely believed that Agriculture Commissioner Adam Putnam will seek the governor's office in 2018. Putnam and Scott don't have a close relationship, partly due to the fact that Scott has several times threatened to veto Putnam's top legislative priorities.

There are signs - like in last year's final Cabinet meeting - where Putnam has shown that he now has no problem challenging Scott. That could grow as 2018 moves closer and Putnam decides to show even more of his independence.

Chief Financial Officer Jeff Atwater may run for governor as well and may also be eager to distance himself from Scott.

Presidential politics could also prove to be a complicating factor.

When Scott ran for a second term, he relied more on Texas Gov. Rick Perry and New Jersey Gov. Chris Christie than someone like Bush. (Bush probably spent as much time or more campaigning for Putnam's re-election as he did for Scott.)

If Christie jumped into the 2016 presidential race against Bush, would Scott be able to stay on the sidelines after all the work _ and money _ Christie delivered to him?

What would Scott do if the Legislature decided to change Florida's primary date in an effort to help Jeb? Would he go along, or veto the bill?

And if Rubio were to bypass re-election and run for president what would Scott himself do?

Scott considered running for U.S. Senate in 2010 but opted instead to run for governor. When asked recently about his future, Scott said he ran for governor and has no plans to run for anything else.

Would that change, however, if it were an open seat? Or would Scott back someone like Attorney General Pam Bondi _ who he does have a good relationship with _ over other Republicans who also might be interested in seeking to replace Rubio?

A lot of the debate has centered on Thrasher's political career where he has been a loyal Republican who has also been willing to cross swords with unions and public school teachers.

Thrasher has also had a dramatic role in the reshaping of higher education in Florida.

At a restaurant meeting in Orlando with then-Gov. Jeb Bush it was then-House Speaker Thrasher who drew up on a napkin the plan to dissolve the statewide Board of Regents and replace it with local boards of trustees at each state university. It was the regents who at the time had thwarted at least initially plans to bring a medical school to FSU. (The plan was carried out, only to have part of it rolled back by a constitutional amendment creating the current Board of Governors.)

The big argument that supporters of Thrasher - including local political heavyweights such as former Sen. Al Lawson - is that Thrasher's presidency will help FSU in its quest to attain additional financial support in the halls of the state Capitol.

There is an overriding belief that FSU's bid to push itself into the top ranks of American research universities cannot be achieved without an increase in state money. One FSU professor speaking last week to the the presidential search committee lauded FSU alumnus Thrasher as a "successful and passionate" advocate for the school who could help bring in the added money to bolster faculty salaries and build the school's infrastructure.

There's an argument that can be made that the fractious nature of the Legislature - combined with a chief executive now in power who has made it clear that he wants universities to spend less not more - means that even someone with tremendous political capital could have difficulty achieving some sort of major windfall from the state.

But there's a more simple dilemma to deal with: John Thrasher can't really lobby the Legislature.

At least not for the next two years.

Florida's ethics laws, as they have been interpreted by the state's Ethics Commission, make it clear that Thrasher can only have a limited engagement with state legislators.

The commission has dealt with the issue several times, but most recently in 2009 with the hiring of former State Rep. Joe Pickens as a college president.

The commission has taken the position that Florida's Constitution does not allow a former legislator to lobby the Legislature even if it is viewed in the capacity of a public service position. The argument is that the prohibition applies to a higher education position because the goal of the two-year ban is to make sure that legislators do not take actions designed to help them attain the future job. (Just this past session as Thrasher was considering whether to apply for the job he pushed to split up FSU's joint engineering college with Florida A&M University.)

From that opinion:

While we have no doubt that the former member here, like the members at issue in CEO 00-7 and CEO 00-18, is merely furthering a career of service to the public, it is clear to us that neither "opportunities for personal profit through lobbying after leaving the Legislature" nor the potential for influence peddling or the appearance thereof, are exclusive to situations where the employment held after legislative service involves lobbying for private entities.

In the context of conflicts of interests we have often said that the prohibition does not hinge on the personal integrity of the individual, but is rather is prophylactic in nature. CEO 81-76, CEO 97-15. The same is true here; the prohibitions of Article II, Section 8(e) and Section 112.313(9) are clearly and directly stated, and are designed as preventive measures. As we said in CEO 81-57, "the provision seeks to preserve the integrity of the legislative process by ensuring that decisions of members of the Legislature will not be made out of regard for possible employment as lobbyists.

Since legislative decisions affect those in the public sector as well as those in the private sector, it would seem to be equally important that legislative decisions not be colored by regard for future lobbying opportunities in behalf of public entities." For these reasons we recede from our opinions in CEO 00-7 and CEO 00-18, and return to our position, stated in CEO 81-57 and CEO 90-4, that former members are prohibited from representing, for compensation, another person or entity, be it public or private, before the Legislature for a period of two years following their leaving office."

To be clear - this doesn't mean that a university president can't talk to the Legislature.

A legislative committee chairman could indeed "invite" Thrasher to appear before them to discuss issues, including funding issues. But it does mean that there are limits on Thrasher's ability to independently seek out and ask legislators for help during the frenzied 60-day period when legislators work late into the night hammering out a state budget.

Now in case you are wondering.

Thrasher, who between stints as a House and Senate member worked at a prominent lobbying firm in town, is aware of the commission decision. As is FSU'S general counsel. As is FSU Board of Trustees chairman Allan Bense.

It's just something that so far has not received a lot of public discussion so far.

When asked about it last week, Thrasher insisted it would not be an issue, especially since he is not the main lobbyist for the university.

"I don't think it's a real problem for us given the staff we have, given the few times presidents actually go over to the Capitol,'' Thrasher said. "They are going to know what we want. Trust me."

But what's also interesting is that it was Thrasher himself who wanted to go even further than what is in existing law. Two years ago it was Thrasher who sponsored a bill (SB 1560) that would have barred him from even seeking the presidency in the first place. The ethics bill stated that legislators could not work for state universities or colleges while in the Legislature or go to work for them for up to two years following their departure. The bill wound up dying in a Senate committee.

Thrasher is a "non traditional" candidate. Even the search consultant assisting FSU acknowledged that Thrasher would not be considered for a top post like this outside of the state of Florida. It's Thrasher's connections and clout in Tallahassee that make him a candidate worth considering, the consultant said.

The question, however, is whether the presidential search committee and FSU's board has a full discussion on what the 70-year-old Thrasher can achieve during the first two years that the lobbying ban is in effect.

June 12, 2014

The search for a new Florida State University president has turned into one of the prime political stories this summer in Florida that has nothing directly to do with the governor's race.

The intrigue surrounds whether or not state Sen. John Thrasher, a former House speaker and current chairman of Gov. Rick Scott's re-election campaign, is going to wind up with the job. Thrasher initially had the inside track for the position after a contentious narrow vote to make him the main frontrunner. But then Supreme Court Chief Justice Ricky Polston jumped into the fray and that triggered a whole series of events leading up a decision this week to revamp the entire search process. More on that here.

The idea that a Florida university would consider a politician is certainly not new. It reflects the reality that Florida's university system is built on a financial structure that is highly dependent on the good will of the Florida Legislature and the governor. Additionally, the job of president pays relatively well, can boost one's pension plan tremendously, and has a level of prestige and responsibility that is better than many political posts.

There's a long line of political figures who have led universities - whether it was former Lt. Gov. Frank Brogan at Florida Atlantic University, former House Speaker T.K. Wetherell at FSU and Education Commissioner Betty Castor at the University of South Florida. And it's true that some of those picks drew criticism over whether the candidates had the academic credentials for the post.

But the lingering question for FSU's search is whether the entire process so far is stacked in such a way that Thrasher is inevitably the person who gets the job.

Students and faculty who have protested the search have been critical of their level of participation in the search.

Allan Bense, the former House speaker and father-in-law of current House speaker Will Weatherford , nominated a 27-member committee (which was approved by the FSU Board of Trustees) that has four faculty members, three students and four people who work for the university. Contrast that with the University of Florida presidential search which on its 17-member panel has a majority with direct ties to the school: Three faculty members, two deans, three university vice presidents, one athletics administrator and one student.

Many of the other members on the FSU search committee have substantial ties to Tallahassee's politically-charged environment. That's not to say they came in with the sole purpose of picking Thrasher, but they are people who are acutely aware of the heavy role that the Legislature plays and may consider that important to FSU's future success.

That list includes Bense himself, as well as Kathryn Ballard, a trustee and husband to powerhouse lobbyist and GOP fundraiser Brian Ballard. There's also former Senate President John McKay, current state Rep. Jimmy Patronis, Delores Spearman, the wife of another big-time lobbyist Guy Spearman, Drew Weatherford, former FSU quarterback turned lobbyist and brother of the current House speaker, and Al Lawson, a former state legislator turned lobbyist.

It's worth noting that two of those members present at this week's meeting _ Weatherford and Lawson _ said they had not asked to serve on the search committee ahead of time.

"I read it in the newspaper just like everybody else,'' said Lawson, who this spring had a lobbying contract worth at least $20,000 with the FSU Board of Trustees headed by Bense. (Lawson for his part doesn't believe this constitutes a conflict on his part to serve on the search committee.)

Weatherford, who works at Strategos Public Affairswith former Rep. Trey Traviesa and former legislator and Education Commissioner Jim Horne, also said he did not ask anyone ahead of time to appoint him.

"Having been a student athlete here I think they appreciated my perspective,'' said Weatherford who added that he is also recent graduate who is not "too far removed" from campus life.

Bense defended the people he recommended for the search committee to the full FSU board saying he tried to a "cross section of folks" who had various ties to the university including alumni and athletic boosters and professors.

"I'm sure I made a lot of people unhappy,'' Bense said following this week's search committee meeting.

Bense, who has said several times that politics are a reality for university presidents to deal with, continues to insist that the search is wide open and that no one nominee has the job locked down.

"I'm doing all I can to do away with that myth,'' Bense said.

Bense also contends the decision to hire a new search consultant and to revisit the timeline now in place shows that he and other search committee members are listening.

"I do hope that the faculty recognizes that today we clearly listened to them,'' Bense said. "We're going to reset the clock and hopefully we can find a great new president."

But Lawson, who spent three decades in the Florida Legislature, said that in his mind Thrasher remains firmly "in the mix" of people that the university should consider.

"If you are not very astute to the legislative process, the university may not flourish,'' he said.

April 04, 2014

In what may seem like a completely different era the Florida Legislature was required to put some things in the public domain about how things wound up in the budget.

For many years legislators were required to at least document some evidence of a request for an earmark, or what was known as the "Community Budget Issue Request System." Legislators were required to fill out forms explaining a request a funding. One example: In 2008 Rep. Will Weatherford requested $3 million for a domestic violence center along with requests for nine other projects.

When the Great Recession caused a massive downturn in the economy there was a decision made by legislative leaders to shut down this effort.

"With the further decline in state revenues, it is my desire to avoid creating unrealistic funding expecations,'' wrote Senate President Jeff Atwater in a 2009 memo.

But even though the Florida Legislature has a budget surplus to work with this year there has been no move to return to this type of tracking system. Back in 2010 Democratic candidate for Chief Financial Officer Loranne Ausleysuggested requiring the reinstatement of the system so that "politicians must own their pork spending."

As this story notes - there's no shortage of hometown projects in the roughly $75 billion budget that legislators are working on right now.

The question is how the project got there and whether members of the public and press can deduce the origins of something.

Let's take just one project: $10 million for the "FSU College of Engineering" that has been in the Senate budget a couple of weeks now.

This project - along with $3 million in operational money pushed by Sen. John Thrasher - caused a firestorm on the Senate floor on Thursday. Thrasher acknowledged that the $10 million was for a separate building on the Florida State University campus to help transition to a new engineering school apart from the current joint school operated with Florida A&M University.

FAMU officials strongly oppose any move to separate the two schools and several legislators said it hearkened back to a time when FAMU's law school was shuttered in the '60s and the funding was shifted to a new law school at FSU. Thrasher defended the move by noting the declining enrollment in the FAMU part of the program.

Traditionally it is up to the Senate and House appropriations chairman to be responsible for placing construction items that are part of what is known as the Public Education Capital Outlay (PECO) list in the budget.

When asked Sen. Joe Negron, the Senate budget chief, initially said that the money for the school was on the PECO list given to the Florida Legislature by the Board of Governors, the appointed panel that oversees the state university system.

"I believe the Board of Governors had okayed consideration of that request,'' Negron said.

Then when asked if the board had put in for a stand-alone FSU facility Negron said: "It came from us having a certain amount of fixed capital to spend and looking at all the potential places" and deciding to put it toward the stand-alone facility.

"I think it's good policy," Negron continued. "I think we are going to take a good engineering school and turn it into two great schools."

So the question remains: Did the Board of Governors suggest funding for this project?

No.

The Board of Governors submitted a PECO list that calls for spending $30 million over the next two years for the construction of a new building to sit next to the two existing buildings that now make up the college. The House budget includes $15 million for the joint facility.

Furthermore a committee of the board last October was given a presentation on why a new $36 million building at the joint campus is needed.

The presentation prepared by FAMU & FSU officials contended that if funding were delayed there would be a "loss of propsective talented engineering students due to inadequate and outdated educational facilities including the current use of several temporary and dilapidated trailers/portables."

That's right - they are using portables at the current joint school.

Additionally the presentation states this: "The College has far outgrown its existing facilities. The College relies on outdated modular units to temporarily meet its space needs. Since the College is isolated from both main campuses it is difficult to share the resources of the libraries, auditorium, information and other student centered facilities."

State legislators changing the PECO list for universities is nothing new. It's how FSU got money to help build the University Center that now surrounds its football stadium. Legislative leaders have often used their clout to help universities in their own backyard.

But it also has led to some problems.

Atwater himself at the time defended the shutting down of the community budget system because he said it did not prevent the situation that happened when then-House budget chiefRay Sansom placed $6 million funding in the budget for his own hometown college for a project that turned out to be a hangar.

Sansom wound up being investigated over the deal although charges were eventually dropped after the judge in the case ruled that testimony from a key witness could not be used.

In the immediate aftermath, however, Atwater helped institute a policy that required college and university officials to publicly testify before the Legislature about what projects they actually needed and wanted on the PECO list.

Budget staff called it the "PECO Parade."

And guess what? The Legislature didn't do it last year. It would be a fair guess to suggest they won't do it this year either.

October 27, 2010

With polls showing that he continues to lag behind rival Marco Rubio, the hour that Gov. Charlie Crist spent with David Gregory at Tuesday night’s U.S. Senate debate might be his final time in the national spotlight.

Crist, who had successfully climbed from the ranks of the state senate into the governor’s mansion, is now confronted with the prospect that his political career for now is over. His decision to bolt the Republican Party and run as an independent means that he will have few options after this year.

His political ascent was marked by several twists and turns and it is hard to imagine that the man now preaching about independence and moderation once accused Democrats of dirty tricks in getting then-Gov. Lawton Chiles elected over Jeb Bush back in 1994.

But as Crist exits the stage, he leaves behind an uncertain – and largely incomplete – legacy as Florida’s governor. Crist became the first governor to voluntarily give up the post after one term in the 40-plus years that governors have been allowed to seek re-election.

Lance deHaven-Smith, a professor of public administration and policy at Florida State University, said Crist’s legacy actually depends on how the election turns out next week.

“Crist tried to move his party and the state back toward the middle after eight rather polarizing years under Jeb Bush,'' notes deHaven-Smith said in an e-mail. “He did not accomplish much policy-wise compared to many other governors, but he contributed to significant improvements in the state’s civic culture. If he is elected to the Senate, Florida is likely to see a continuation of this moderation in public office for both parties. If he loses, well, his legacy of compromise and pragmatism may be short-lived."

David Colburn, a professor of history at the University of Florida and a long-time scholar of state politics, said that Crist clearly tried to work with both political parties and was not ideological in how he approached problems. An example of this, of course, was Crist's decision to embrace the federal stimulus in order to help ease Florida's budget woes.

“I think it is easy to dismiss Crist as a politician who is only interested in getting and holding office and that there really is not much to him,’’ Colburn said in an e-mail. “Clearly he is not ideological and he made clear to more than one state political leader that "he was not Jeb Bush." By that he meant that he was willing to work with both parties to find solutions to critical issues facing Florida and that he did not dismiss government's role in improving the quality of life for Floridians.”

But Colburn also made it clear that Crist is unlikely to leave the same kind of impact that other governors left.

A full look at Crist's uncertain legacy can be found here at the Florida Tribune.

May 27, 2010

Gov. Charlie Crist could act sometime Thursday on the $70.4 billion budget that state lawmakers adopted during their spring session.

Many salient facts about the budget have been reported including that it's bigger than what Crist himself proposed, that it includes money for items only if Congress kicks in extra federal help, and that it contains many projects pushed by the two budget chiefs in the Legislature.

But there's always some interesting odds and ends that haven't gotten much attention. Some of these spending items are perennials and have been in the state budget for years and are unlikely to get vetoed by the governor.

Still it's a testament to what can get wedged into a 444-page document.

1. School funding study - $100,000. The budget sets aside $100,000 to hire an “entity
located outside the state of Florida” to study the state’s school funding
formula and review it for the “sole purpose of recommending any improvements to
the existing formula that would better reflect the varying characteristics of
each of the 67 schooldistricts.” This
study – which is due by Jan. 1, 2011 - is also supposed to assess the “equity”
of the current school funding formula.This is a big deal for South
Florida lawmakers still upset with a 2004 change to the state’s school funding
formula that used to steer more money to urban school districts to cover higher
living expenses. Legislators especially from Miami-Dade County want someone
outside the state to look at whether the revamped formula is fair. This could be the prelude to another big fight next year over school funding.

2. Some college students helped, some college students hurt. There has been publicity surrounding the proposed changes to Bright Futures - the popular merit based scholarship program paid out of Lottery ticket sales. But less noticed was a decision by state lawmakers to actually increase the amount of financial aid set aside for needy college students.

Legislators for example cut by $1 a credit hour the money available for Bright Futures. This cut, however, could even be a bit larger since $25 million is contingent on getting extra money from the federal government to help with Florida's Medicaid bill. The move comes at the same time lawmakers increased tuition by 8 percent and universities are authorized to raise tuition even higher. But lawmakers also helped out Bright Futures students attending community colleges that offer four-year degree programs.

Funding for two financial aid programs that help students at private schools - including the Florida Resident Access Grant - was cut by 4.1 percent.

But lawmakers did give a slight increase for need-based financial aid provided to both public and private school students. The maximum amount per award would go from $2,069 to $2,235.

Legislators also passed HB 5201to accompany the state budget. This would make permanent changes to Bright Futures - including making the scholarship amount a flat rate in the budget instead of tying it tuition hikes - and would increase eligibility requirements over the next four years. This same bill also contains language that establishes the doctor of pharmacy program for the University of South Florida at the polytechnic campus in Lakeland. (It would not be all that surprising if Crist vetoes this bill.)

3. Anti-abortion counseling-$2 million. Legislators expect Crist to vetoHB 1143, the health care bill that includes the requirement that women get an ultrasound if they are seeking an abortion during the first trimester. They have purposely held the bill back so there is time to mount a campaign to convince Crist to support it. What's lost in the dust-up is that more than a year ago Crist intervened and saved the state's crisis counseling program from getting cut. This program - which was started while Jeb Bush was in office - provides money for pregnancy support centers and advertising for billboards that direct people to a hotline. Lawmakers this year spared it from any cuts. There was a provision added that states 85 percent of the money will be used for "direct client services, website maintenance and Option line."

4. Insurance Commissioner Kevin McCarty's summer homework. McCarty has been a constant target of some lawmakers the last few years especially after he urged Crist to veto last year's property deregulation bill. This year the Office of Insurance Regulation did lose 10 positions in the new budget, but its funding level was close to last year's spending. Lawmakers, however, have demanded that McCarty produce by Sept. 1 a detailed report of all residential property insurance rate filings submitted during the last fiscal year. The report has to include lots of information including the name of the OIR actuary who reviewed the rate filing and the days it took for regulators to act on the filing request. This move comes in the wake of grumbling that McCarty's office opposed some of the insurance proposals floating around this past session even though his office was approving rate hikes.

5. Motorcycle safety awareness-$250,000. This is a reduction in funding from last year, but the budget this year directly orders the Department of Highway Safety and Motor Vehicles to provide this money to just one group: American Bikers Aiming Toward Education of Florida Inc. This is a group that lobbies on behalf of bikers and led the charge to repeal the requirement that bikers 21 or older must wear a helmet. The president of the organization says his group should get the money because it has a motorcycle safety awareness program in place that has helped reduce motorcycle deaths in Florida.

6. Banning assault rifles. The Sun-Sentinel first reported that there was a push to block Chief FinancialOfficer Alex Sink from using any money to purchase assault rifles for her fraud investigators. This led to a mocking ad from the Republican Party of Florida that prompted Sink to accuse the party of making fun of law-enforcement officers. Just to bring it full circle the final version of the budget included the provision that Sink's office cannot purchase "assault-type weapons."

7. Cancel this lease, we mean it. Last year the Legislature wanted to get a better handle of how land the state owned and how much office space it leased. Lawmakers weren't totally satisfied with the response they got from the state's main landlord - the Department of Management Services. This year's budget goes out of its way to specify how, when and where certain state offices are to be closed due to budget cuts. The budget orders the closing of 10 driver license offices around the state stretching from Fort Walton Beach to Vero Beach. But there's also language that lists the address and locations of other state offices in Key West, Chipley and Tallahassee that are to have their leases ended. Lawmakers also ordered the cancellation of a lease payment for a copier in a Key West office and for postage meters in several locations.

8. Unlicensed activity media campaign - $600,000. This has been in the budget for years, but it gets scant discussion. The state sets aside money to "publicize the dangers" of unlicensed real estate activity and unlicensed accountants. The money to battle unlicensed real estate activity can be used to pay for media production and advertising materials from a non-profit corporation that represents the largest number of licensed real estate professionals. The money to educate the public about unlicensed accountants will be spent in consultation with a company that represents the largest number of licensed CPAs.

9. Florida International University/Department of Health-$32.5 million. This has already gotten some publicity as a project associated with Rep. David Rivera, R-Miami and the powerful budget chief. But what's interesting is that the state plans to borrow money to construct and manage the building.

10. Free orange juice - $240,000. Of course what would a Florida welcome station be like if there wasn't free orange juice available to visitors. The Department of Citrus is authorized to spend this much for "citrus juice" to be handed out at the state's four welcome stations located in Escambia, Hamilton, Nassau and Jackson counties in North Florida.

March 05, 2010

Then-Gov. Jeb Bush led the charge against the amendment - which called for capping class sizes in public schools - by saying the cost of the amendment would "blot" out the sun.

Bush tried to get the Legislature to freeze or even scale back the amendment, but his efforts came up short, most notably in 2005 when it was defeated in the GOP-controlled Senate by a 21-19 vote.

Flash forward to this year when it looks inevitable that a new measure to change the class size caps will clear the Senate. Republicans who opposed it five years ago have flipped their votes and not even all Democrats are standing in opposition.

Still some Democrats are wondering why Republican legislators are doing this. They say the final restrictions required by the amendment can be met by changing state law to give districts some wiggle room.

Republicans say that they can't ignore the constitutional requirements and that the final caps that kick in this fall are just too expensive to pay for.

But it's worth noting that the original 2002 amendment was championed by U.S. Rep. Kendrick Meek, D-Miami and the likely Democratic nominee this fall for U.S. Senate.

If the class size do-over is on the ballot, then Republicans would be able to point a finger at Meek and ask why he wants to impose expensive restrictions on schools at a time the state is grappling with budget problems.

Remember it was Bush who used the original class size amendment as a way to brand his Democratic rival Bill McBride as a tax and spend liberal. During his entire 2002 re-election campaign Bush kept asking how McBride would pay for class size. Now of course Alex Sink - the husband of McBride - is running for governor and she could have to deal with the same question.

April 29, 2009

Later today the GOP-controlled Legislature will have done something once unthinkable:

Rein in the Bright Futures Scholarship Program, the wildly popular scholarship program begun in 1997, that has continued to grow in the cost over the last dozen years. Between 2002 and 2008 alone the cost of Bright Futures - which provides anywhere from 75 percent to 100 percent - grew from $190 million to $383 million. In the last school year, nearly 160,000 students across the state received a Bright Futures scholarship. The great majority of these students were white and attended a 4-year state university. For example, nearly 27,000 recipients alone attended the University of Florida.

The House is expected to take up and send to Gov. Charlie Crist SB 762, the tuition differential bill that would allow Florida's 11 public universities to move tuition rates to the national average. The legislation mandates that part of the money goes to undergraduate education improvements, while some of it will be set aside for financial aid.

But the most important part of the bill may be that it exempts differential tuition rates from the Bright Futures scholarship program. Translation: As universities raise tuition rates, students will become responsible for paying the higher rates instead of the state picking up the tab.

Most of the discussion about this bill has centered around the potential for 15 percent a year tuition hikes, but a bigger impact from the legislation will be what it means for some Bright Futures recipients. The Senate analysis spells out in stark terms: By the start of the 2013 school year students attending the University of Florida, Florida State University, Florida International University, University of Central Florida and University of South Florida would be paying 45 percent of the cost of their education while those attending other schools would pay 41 percent.

The bill does not apply to any students who entered a university prior to July 2007 but it means that Florida Academic Scholars - those Bright Futures recipients who now get 100 percent (or close to it depending on which school they already attend) of their tuition and fees paid - will see the value of their scholarship decline by nearly half.

This is monumental given that Frank Brogan, now the president at Florida Atlantic and former Education Commissioner, and Sen. Ken Pruitt, the sponsor of this bill, were among those who vowed to never break the promise of Bright Futures. (And of course the irony here is that the scholarship program was begun as a way to blunt criticism that lottery revenues were not being used to enhance education.)